Spain’s wine sector has recorded a strong rebound in the 2024/2025 season, with production up 15% compared to the previous year, according to the 2025 Wine Sector Report presented on September 23 by Agrifood Comunicación and AgroBank.
Despite this positive trend, the report emphasizes persistent structural challenges that continue to weigh on the long-term outlook.
Spain Maintains Global Leadership in Vineyard Area
With 911,080 hectares under vine, Spain remains the world’s leading country in terms of vineyard area, representing 13% of the global total. This vast resource underlines the country’s central role in global viticulture. However, the report places this achievement in the context of a global downturn: world wine production fell in 2024 to 225.8 million hectoliters, the lowest level since 1961. At the same time, global consumption also declined to 214.2 million hectoliters, reflecting broader pressures on the international market.
Strong Export Performance
Despite global challenges, international trade in wine has held up well. In 2024, nearly 100 million hectoliters were exported worldwide, with a value of EUR 35.9 billion and an average price of EUR 3.60 per liter. Spain continues to rank as the second-largest wine exporter by volume, shipping around 20 million hectoliters abroad. However, the country faces a persistent issue: a large share of exports are in bulk wine, which generates less added value compared to the bottled wines exported by Italy and France.
Between July 2024 and June 2025, Spain exported 19.1 million hectoliters worth nearly EUR 3 billion (EUR 2.947 billion), approaching a historic record. Germany, the United States, France, and the United Kingdom remain the country’s main markets.
Low Domestic Consumption
Domestically, consumption continues to lag behind European peers. Spaniards consume only 24 liters per capita annually, one of the lowest figures in Europe. Despite rising production and solid exports, this stagnant internal demand remains a critical weakness for the sector.
Regional and Market Dynamics
The report highlights Castilla-La Mancha as the engine of Spanish wine, accounting for nearly half of the national vineyard area and ranking as the largest wine-producing region in the world. In terms of output, white wines now represent 57% of Spain’s production, marking a clear shift in consumption and production patterns.
Wine prices are also on the rise. White wine reached EUR 52.98 per hectoliter, up 6.7%, while red wine rose slightly to EUR 43.57 per hectoliter, up 0.4%.
Economic Importance and Employment
The wine industry contributes 1.6% of Spain’s GDP and provides more than 370,000 direct and indirect jobs, underscoring its role as a key pillar of the Spanish agri-food sector. Forecasts for the current harvest suggest nearly 38 million hectoliters, exceeding the previous year’s output but still below the average of the past decade.
Structural Challenges Ahead
Despite recent growth, the Spanish wine sector faces several pressing challenges:
- Low domestic consumption, limiting local market strength.
- Fragmented production, which reduces competitiveness.
- High reliance on bulk wine exports, restricting value growth.
- Adapting to changing consumer habits, including rising demand for premium, sustainable, and low-alcohol wines.
- Climate change impacts and growing international competition.
As Spain celebrates a productive year, the sector’s long-term success will depend on its ability to move up the value chain, stimulate domestic demand, and innovate in the face of climate and market pressures.
Source: Vinetur